Navigating the Complexity of the New World
E-Book, Deutsch, 401 Seiten
ISBN: 978-3-593-43536-7
Verlag: Campus
Format: PDF
Kopierschutz: Wasserzeichen (»Systemvoraussetzungen)
In the six parts of this book, he will first look at the dynamics of the Great Transformation 21, its inherent risks of crisis and its opportunities, as well as the labor pains that the New World is suffering. After that, he will deal with the amazingly effective cybernetic systems for strategic navigation and the strategy maps required for that, as well as the empirical quantification of businesses, both existing and yet unknown, which will help break the new territory of innovation. Finally, Malik will reveal the patterns that the tidal currents of great transformations invariably follow, as well as the economic dynamics resulting from them and the strategies required to deal with them.
In the last part of the book he will describe the revolutionary new methods that enable us to master groundbreaking strategic change with great precision and unprecedented time compression - at the "speed of light", so to speak. This way, even enormous corporate growth and size can be managed and turned into true strengths, with perfect ease and using innovative approaches where conventional approaches have proven useless.
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Contents
Preface 19
Strategic Solutions for REvolutions 19
The New Challenges 19
The Right Knowledge 21
The Right Strategy for the Great Transformation21 23
The Revolution in the Great Transformation21 24
Innovative, Intelligent and Right Solutions 25
Strategy: Navigating Effectively Through the Complexity of the Great Transformation21 26
Key Propositions 28
A Word On the Terms Used 30
Part I: Strategy for the Great Transformation21
1.What Strategy Looks Like When the Future is Unknown 37
2.The Great Transformation21 41
The Old World Ends as a New World Is Born 43
Megachange in Megasystems 44
The Current Crisis as the New World's Birth Pangs 45
It Takes More than Economics to Understand the Global Economic Crisis 46
Anglo-Saxon Corporate Governance-A Machine of Destruction 47
Complexity and Management Crisis: The Absence of Neuronal Systems 50
Third Act of the Crisis: Deflation 51
The New Way of Functioning: Mastering Complexity 53
3.When You Do Not Know What You Need to Know: The Minefield of Strategic Errors 55
Strategic Delusion by Operational Data 55
Operational and Strategic Management 60
Strategic Thinking Traps 66
Part II: Strategy as Master Control in the Wholistic Management Systems
1.Making Companies Function Well 77
Enhancing Management Impact Through Management Support Systems 77
Right and Good Management-Universally Valid 78
Management, Financial Markets, and Alpinism 81
A Practical Hint for Readers in the Know 82
What are Master Controls? 83
The Basic Management Model and Its Basic Concepts 84
Management of Institutions: The General Management Model 85
Management of People: The Standard Model of Effectiveness, or "Management Wheel" 88
The Integrated Management System-IMS 89
Integrated Strategy as a Top Cross-Divisional Function 92
2.Providing Direction Through
Corporate Policy and Business Mission 95
The Right Purpose 95
The Right Mission 100
The Right Performance 106
Part III: Mastering Complexity Through Reliable Navigation in Any Circumstance
1.Revolutionizing Strategic Navigation 113
The Malik-Gälweiler Navigation System 114
The Right Strategy for a Future Unknown 117
Putting an End to Arbitrariness in Strategy Design 117
Looking Further Into the Future-Without Forecasts 119
Time Constants and System Dead Time 119
Limitations of the Market Economy:
Why Economists Do Not See Far Enough 120
What Must Be Monitored: Variables for Control and Orientation 121
Reliable Function With Cybernetic Control Systems 122
2.Reliable Control Through Cybernetic Navigation 124
First System Level: Liquidity 124
Second System Level: Profit 129
Third System Level: Current Profit Potential (CPP) 131
Fourth System Level: Future Profit Potentials (FPPs) 136
3.Setting the Right Strategy, Irrespective of Economic Climate: The Strategy Map 143
The Solution-Invariant Customer Problem 147
Solution Technologies 154
Socioeconomic Trends 157
Market Position 159
Investments and Cost Reduction Potentials 166
Research and Development Objectives 168
Finance and Balance Sheet Variables 170
Part IV: Following the Change: Success Factors for Your Current Business
1.No More Blind Flying: PIMS-The High Art of Strategy Development 175
Strategic Leadership 176
The PIMS Revolution 178
Strategy at the Strategic Business Unit Level 179
Discovery of the "Laws of the Market Place" 179
A Brilliant Research Idea: Profits Are Driven by Structure, not the Industry 181
New Benchmarking Based on the Biological Pattern 182
The PIMS Database Suites 183
Universally Valid Factors Determine Seventy-five Percent of Profits 185
Answering Key Questions of Strategy 187
Eight Key Factors for Success 188
2.Strategic Core Knowledge: A Cornucopia of Insights 189
Market Position 189
Stability of Results Over Time 190
A Seeming Anomaly Triggers Discovery of a New Factor 191
Is Innovating a Good Thing? 192
Where Many Businesses Lose Earning Power Without Even Noticing 193
How Important Is Market Growth? 194
Systemic Interconnectedness of PIMS factors 195
PIMS and the Six Central Performance Controls (CPC) 198
The Cybernetics of PIMS Strategy Development 198
Overview: Benefits of PIMS Findings for Top Management 199
Criticism of the PIMS Program 200
What Remains Valid in Business When Everything Changes 201
3.Breaking Strategic Barriers:
Three Pioneering Models From PIMS 203
Knowing the Potential of a Business: The PIMS Par Model 203
Learning From Winners: The PIMS Look-Alike Model 206
The Customer Value Map: Using Customer Value and Competitiveness as Reliable Guiding Stars 211
Part V: Ahead of Change: Success Factors for Your New Business
1.Constants in the Currents of Change 223
The Magic of Patterns that Connect 225
We, too, Will Be Replaced: Creative Destruction 226
Symphony of S-Curves: Seeing the Future Clearly 228
Simple Growth Processes 229
From Growth to Substitution 233
When Several Systems Compete for Existence 234
Discovering the Secret Driver of Epochal Change 236
Centennial Cycles: Invention-Innovation-
Substitution-Exploitation 238
Was Kondratieff Right?
The Rhythm of Long Economic Cycles 241
Self-Destructing and Self-Creating Systems 243
2.Innovating for the Great Transformation21: How to Preprogram Success 246
From the Art to the Craft of Innovation 247
Misconceptions About Innovation 249
3.Mastering Even the Unknown: The PIMS Start-up Strategy 255
Start-ups as a Synthesis of Several Arts: The Secrets of Innovation Success 256
The Right Environment for Start-up Businesses 265
Choosing the Right Strategy in the Right Environment: Knowing, Not Guessing 267
4.Implementing Start-up Strategies:
Basic Rules for Effective Innovation 274
1. Go for the Top: Market Leadership and Distinct Changes 275
2. Make Room for New Things 275
3. Separate the Old From the New 276
4. Look for Opportunities in Problems 278
5. Ask Controllers for a Second "First Page" 279
6. Write Down Your Expectations 279
7. Determine Cut-off Points 280
8. Make Sure You Have the Best People 280
9. Run Tests 281
10. Strictly Focus on a Few Things 281
Part VI: Revolutionizing Management Methods: Strategic Approaches Without Time or Space Limits
1.Direttissima: Taking the Most Direct Path to the Right Strategy 285
2.Revolutionizing Change With the Syntegration Method 293
Epoch of New Leadership: Quantum Leap in the Social Technology of Functioning 293
Change and Innovation-Swift and Effective 294
What is the Syntegration Method and What Does it Accomplish? 295
3.The Cyber-Tools 310
SensiMod: The Sensitivity Model As the Organization's GPS 311
EKS: Dynamic Specialization 318
Management System Audit (MSA):
New Ways of Functioning and Implementing 325
Operations Room: Implementation With Real-Time Control 330
4.How Even Giants Learn to Dance: HyperSyntegration 337
Appendix
Concept and Logic of the Series "Management: Mastering Complexity" 347
The Malik Management Systems And Their Users 354
What Readers Need to Know in Order to Understand this Book Series 364
Glossary 373
Termin protected by trademark and copyright 385
About the Author 386
Selected affiliations 388
Selected awards 389
Bibliography 390
Index 393
1;How I Look at Management;8
2;Right and Good Management,in My Definition, Is…;9
3;Contents;12
4;Preface;20
4.1;Strategic Solutions for REvolutions;20
4.2;The New Challenges;20
4.3;The Right Knowledge;22
5;Introduction: The Right Strategy for theGreat Transformation21;24
5.1;The Revolution in the Great Transformation21;25
5.2;Innovative, Intelligent and Right Solutions;26
5.3;Strategy: Navigating Effectively Through the Complexity of the Great Transformation21;27
6;Key Propositions;29
7;A Word On the Terms Used;31
8;Part I: Strategy for theGreat Transformation21;36
8.1;1. What Strategy Looks LikeWhen the Future is Unknown;38
8.2;2. The Great Transformation21;42
8.2.1;The Old World Ends as a New World Is Born;44
8.2.2;Megachange in Megasystems;45
8.2.3;The Current Crisis as the New World’s Birth Pangs;46
8.2.4;It Takes More than Economics to Understandthe Global Economic Crisis;47
8.2.5;Anglo-Saxon Corporate Governance—A Machineof Destruction;48
8.2.6;Complexity and Management Crisis:The Absence of Neuronal Systems;51
8.2.7;Third Act of the Crisis: Deflation;52
8.2.8;The New Way of Functioning: Mastering Complexity;54
8.3;3. When You Do Not Know What You Need to Know: The Minefield of Strategic Errors;56
8.3.1;Strategic Delusion by Operational Data;56
8.3.2;Operational and Strategic Management;61
8.3.3;Strategic Thinking Traps;67
9;Part II: Strategy as Master Control in the Wholistic Management Systems;76
9.1;1. Making Companies Function Well;78
9.1.1;Enhancing Management Impact Through Management Support Systems;78
9.1.2;Right and Good Management—Universally Valid;79
9.1.3;Management, Financial Markets, and Alpinism;82
9.1.4;A Practical Hint for Readers in the Know;83
9.1.5;What are Master Controls?;84
9.1.6;The Basic Management Model and Its Basic Concepts;85
9.1.7;Management of Institutions:The General Management Model;86
9.1.8;Management of People: The Standard Modelof Effectiveness, or “Management Wheel”;89
9.1.9;The Integrated Management System—IMS;90
9.1.10;Integrated Strategy as a Top Cross-Divisional Function;93
9.2;2. Providing Direction ThroughCorporate Policy and Business Mission;96
9.2.1;The Right Purpose;96
9.2.2;The Right Mission;101
9.2.3;The Right Performance;107
10;Part III: Mastering ComplexityThrough Reliable Navigationin Any Circumstance;112
10.1;1. Revolutionizing Strategic Navigation;114
10.1.1;The Malik-Gälweiler Navigation System;115
10.1.2;The Right Strategy for a Future Unknown;118
10.1.3;Putting an End to Arbitrariness in Strategy Design;118
10.1.4;Looking Further Into the Future—Without Forecasts;120
10.1.5;Time Constants and System Dead Time;120
10.1.6;Limitations of the Market Economy:Why Economists Do Not See Far Enough;121
10.1.7;What Must Be Monitored: Variables for Controland Orientation;122
10.1.8;Reliable Function With Cybernetic Control Systems;123
10.2;2. Reliable Control Through Cybernetic Navigation;125
10.2.1;First System Level: Liquidity;125
10.2.2;Second System Level: Profit;130
10.2.3;Third System Level: Current Profit Potential (CPP);132
10.2.4;Fourth System Level: Future Profit Potentials (FPPs);137
10.3;3. Setting the Right Strategy, Irrespectiveof Economic Climate: The Strategy Map;144
10.3.1;The Solution-Invariant Customer Problem;148
10.3.2;Solution Technologies;155
10.3.3;Socioeconomic Trends;158
10.3.4;Market Position;160
10.3.5;Investments and Cost Reduction Potentials;167
10.3.6;Research and Development Objectives;169
10.3.7;Finance and Balance Sheet Variables;171
11;Part IV: Following the Change:Success Factorsfor Your Current Business;174
11.1;1. No More Blind Flying: PIMS—The High Art of Strategy Development;176
11.1.1;Strategic Leadership;177
11.1.2;The PIMS Revolution;179
11.1.3;Strategy at the Strategic Business Unit Level;180
11.1.4;Discovery of the “Laws of the Market Place”;180
11.1.5;A Brilliant Research Idea: Profits Are Drivenby Structure, not the Industry;182
11.1.6;New Benchmarking Based on the Biological Pattern;183
11.1.7;The PIMS Database Suites;184
11.1.8;Universally Valid Factors DetermineSeventy-five Percent of Profits;186
11.1.9;Answering Key Questions of Strategy;188
11.1.10;Eight Key Factors for Success;189
11.2;2. Strategic Core Knowledge:A Cornucopia of Insights;190
11.2.1;Market Position;190
11.2.2;Stability of Results Over Time;191
11.2.3;A Seeming Anomaly Triggers Discovery of a New Factor;192
11.2.4;Is Innovating a Good Thing?;193
11.2.5;Where Many Businesses Lose Earning PowerWithout Even Noticing;194
11.2.6;How Important Is Market Growth?;195
11.2.7;Systemic Interconnectedness of PIMS factors;196
11.2.8;PIMS and the Six Central Performance Controls (CPC);199
11.2.9;The Cybernetics of PIMS Strategy Development;199
11.2.10;Overview: Benefits of PIMS Findings for Top Management;200
11.2.11;Criticism of the PIMS Program;201
11.2.12;What Remains Valid in Business When Everything Changes;202
11.3;3. Breaking Strategic Barriers:Three Pioneering Models From PIMS;204
11.3.1;Knowing the Potential of a Business:The PIMS Par Model;204
11.3.2;Learning From Winners: The PIMS Look-Alike Model;207
11.3.3;The Customer Value Map: Using Customer Valueand Competitiveness as Reliable Guiding Stars;212
12;Part V: Ahead of Change:Success Factorsfor Your New Business;222
12.1;1. Constants in the Currents of Change;224
12.1.1;The Magic of Patterns that Connect;226
12.1.2;We, too, Will Be Replaced: Creative Destruction;227
12.1.3;Symphony of S-Curves: Seeing the Future Clearly;229
12.1.4;Simple Growth Processes;230
12.1.5;From Growth to Substitution;234
12.1.6;When Several Systems Compete for Existence;235
12.1.7;Discovering the Secret Driver of Epochal Change;237
12.1.8;Centennial Cycles: Invention—Innovation—Substitution—Exploitation;239
12.1.9;Was Kondratieff Right?The Rhythm of Long Economic Cycles;242
12.1.10;Self-Destructing and Self-Creating Systems;244
12.2;2. Innovating for theGreat Transformation21:How to Preprogram Success;247
12.2.1;From the Art to the Craft of Innovation;248
12.2.2;Misconceptions About Innovation;250
12.3;3. Mastering Even the Unknown:The PIMS Start-up Strategy;256
12.3.1;Start-ups as a Synthesis of Several Arts:The Secrets of Innovation Success;257
12.3.2;The Right Environment for Start-up Businesses;266
12.3.3;Choosing the Right Strategy in the Right Environment: Knowing, Not Guessing;268
12.4;4. Implementing Start-up Strategies:Basic Rules for Effective Innovation;275
12.4.1;1.Go for the Top:Market Leadership and Distinct Changes;276
12.4.2;2.Make Room for New Things;276
12.4.3;3.Separate the Old From the New;277
12.4.4;4.Look for Opportunities in Problems;279
12.4.5;5.Ask Controllers for a Second “First Page”;280
12.4.6;6.Write Down Your Expectations;280
12.4.7;7.Determine Cut-off Points;281
12.4.8;8.Make Sure You Have the Best People;281
12.4.9;9.Run Tests;282
12.4.10;10.Strictly Focus on a Few Things;282
13;Part VI: Revolutionizing Management Methods: Strategic Approaches Without Time or Space Limits;284
13.1;1. Direttissima: Taking the Most Direct Path to the Right Strategy;286
13.2;2. Revolutionizing Change Withthe Syntegration Method;294
13.2.1;Epoch of New Leadership: Quantum Leapin the Social Technology of Functioning;294
13.2.2;Change and Innovation—Swift and Effective;295
13.2.3;What is the Syntegration Methodand What Does it Accomplish?;296
13.3;3. The Cyber-Tools;311
13.3.1;SensiMod: The Sensitivity Model As the Organization’s GPS;312
13.3.2;EKS: Dynamic Specialization;319
13.3.3;Management System Audit (MSA):New Ways of Functioning and Implementing;326
13.3.4;Operations Room: Implementation With Real-Time Control;331
13.4;4. How Even Giants Learn to Dance: HyperSyntegration;338
14;Appendix;346
14.1;Concept and Logic of the Series“Management: Mastering Complexity”;348
14.2;The Malik Management SystemsAnd Their Users;355
14.3;What Readers Need to Know in Orderto Understand this Book Series;365
14.4;Glossary;374
14.5;Termin protected by trademarkand copyright;386
14.6;About the Author;387
14.6.1;Selected affiliations;389
14.6.2;Selected awards;390
14.7;Bibliography;391
14.8;Index;394
Contents
Preface 19
Strategic Solutions for REvolutions 19
The New Challenges 19
The Right Knowledge 21
The Right Strategy for the Great Transformation21 23
The Revolution in the Great Transformation21 24
Innovative, Intelligent and Right Solutions 25
Strategy: Navigating Effectively Through the Complexity of the Great Transformation21 26
Key Propositions 28
A Word On the Terms Used 30
Part I: Strategy for the Great Transformation21
1.What Strategy Looks Like When the Future is Unknown 37
2.The Great Transformation21 41
The Old World Ends as a New World Is Born 43
Megachange in Megasystems 44
The Current Crisis as the New World's Birth Pangs 45
It Takes More than Economics to Understand the Global Economic Crisis 46
Anglo-Saxon Corporate Governance-A Machine of Destruction 47
Complexity and Management Crisis: The Absence of Neuronal Systems 50
Third Act of the Crisis: Deflation 51
The New Way of Functioning: Mastering Complexity 53
3.When You Do Not Know What You Need to Know: The Minefield of Strategic Errors 55
Strategic Delusion by Operational Data 55
Operational and Strategic Management 60
Strategic Thinking Traps 66
Part II: Strategy as Master Control in the Wholistic Management Systems
1.Making Companies Function Well 77
Enhancing Management Impact Through Management Support Systems 77
Right and Good Management-Universally Valid 78
Management, Financial Markets, and Alpinism 81
A Practical Hint for Readers in the Know 82
What are Master Controls? 83
The Basic Management Model and Its Basic Concepts 84
Management of Institutions: The General Management Model 85
Management of People: The Standard Model of Effectiveness, or "Management Wheel" 88
The Integrated Management System-IMS 89
Integrated Strategy as a Top Cross-Divisional Function 92
2.Providing Direction Through Corporate Policy and Business Mission 95
The Right Purpose 95
The Right Mission 100
The Right Performance 106
Part III: Mastering Complexity Through Reliable Navigation in Any Circumstance
1.Revolutionizing Strategic Navigation 113
The Malik-Gälweiler Navigation System 114
The Right Strategy for a Future Unknown 117
Putting an End to Arbitrariness in Strategy Design 117
Looking Further Into the Future-Without Forecasts 119
Time Constants and System Dead Time 119
Limitations of the Market Economy: Why Economists Do Not See Far Enough 120
What Must Be Monitored: Variables for Control and Orientation 121
Reliable Function With Cybernetic Control Systems 122
2.Reliable Control Through Cybernetic Navigation 124
First System Level: Liquidity 124
Second System Level: Profit 129
Third System Level: Current Profit Potential (CPP) 131
Fourth System Level: Future Profit Potentials (FPPs) 136
3.Setting the Right Strategy, Irrespective of Economic Climate: The Strategy Map 143
The Solution-Invariant Customer Problem 147
Solution Technologies 154
Socioeconomic Trends 157
Market Position 159
Investments and Cost Reduction Potentials 166
Research and Development Objectives 168
Finance and Balance Sheet Variables 170
Part IV: Following the Change: Success Factors for Your Current Business
1.No More Blind Flying: PIMS-The High Art of Strategy Development 175
Strategic Leadership 176
The PIMS Revolution 178
Strategy at the Strategic Business Unit Level 179
Discovery of the "Laws of the Market Place" 179
A Brilliant Research Idea: Profits Are Driven by Structure, not the Industry 181
New Benchmarking Based on the Biological Pattern 182
The PIMS Database Suites 183
Universally Valid Factors Determine Seventy-five Percent of Profits 185
Answering Key Questions of Strategy 187
Eight Key Factors for Success 188
2.
Preface
Strategic Solutions for REvolutions
This book describes my strategic solutions for the REvolutions of the New World, which-although already under way-have yet to be recognized for what they are. That is why most of the measures taken so far are ineffective, with some even having a destructive impact on society.
What I call the New World will be the result of one of the largest global transformations of business and society that has ever taken place. I call it "The Great Transformation21".
The New Challenges
This transformation involves the danger of a social meltdown. At the same time, it also offers a chance for a new economic miracle to bring about a better and more humane social order where organizations function reliably.
What particular course this development will take depends, among other things, on the solutions, methods and tools that leadership elites worldwide can resort to in facing these challenges. It depends on which of the solutions at hand they can identify as genuine solutions, and which they ultimately opt for. One thing is certain: conventional means will not suffice to master the complexity of this transformation, as they have caused much of the current global crisis.
A strong driving force arises from the strategic solutions themselves that I am presenting here. They contribute their share so the upcoming revolutions will happen quickly, while-contrary to previous revolutions-manifesting itself as an innovative breakthrough rather than a violent upheaval.
They liberate us from both, long outdated forms of management and organization and the grotesque limitations of todays's social and political problem-solving processes.
Since 2011 my "Manifesto for Corporate REvolution" has been laid down in my book Corporate Policy and Governance, the second volume in my series Management: Mastering Complexity. Many of the developments outlined there-and even before-have meanwhile materialized, first and foremost the beginning collapse of the financial system. Further profound changes, such as in technology and the sciences as well as in people's social value structures-in particular those of the younger generation-, in their perspective on and perception of the world, have progressed to a point where they cannot be stopped anymore, so they should be accelerated instead and directed along more constructive paths wherever possible.
So, what most people believed impossible at the time of the above publications became a reality just a few years later. In 2008 I wrote that knowledge would outrank money and information would outrank power. The ongoing self-destruction of the financial system proves my first point; the ever-increasing global impact of the social media proves the second. Ruling and leading will never be the same again.
The financial crisis itself, however, will not be a central topic in this book. I have published everything that needed to be said in this respect in the course of the past 15 years; now I let the facts speak for themselves. The scenarios I have presented-some of them as early as in the 1990s-have come true. The basic pattern of this development is "deflationary depression", accompanied by social impoverishment and revolution-that is, unless economists and politicians do a radical rethink and change their course of action. That is why this book is dominated not so much by analyses as it is by solutions and the tools required for implementation.
The Right Knowledge
The knowledge society in the stricter sense is another topic I will not elaborate on here. I have addressed it in my book Corporate Policy.
Rather, what I make available here is the strategic knowledge that enables top managers in all kinds of organizations to tackle the challenges of the Great Transformation21 reliably, quickly, and effectively. The means to do that are my Management Systems® and the navigation, information, and control systems they include, as well as my strategy concepts and about a dozen new and greatly improved methods and tools.
Many of the pioneers among the top managers applying my management systems are left speechless by the power and speed at which problems are solved and more and more often resolved. Particularly effective are the high-performance processes of the social technology of Syntegration which helps master even huge and highly complex challenges better than ever before.
Just like in earlier phases of epoch-making transformation, almost everything is going to change fundamentally and radically. But while past revolutions were driven by machines, the imminent revolution will be driven by a new functioning of societal organizations, of their management at all levels, of their strategies and methods-including the levers of cybernetic self-organization and self-control.
My cordial thanks go to Mag. Tamara Bechter and Dr.?Sonja Böni for their enormously professional support with the new edition of what are so far three volumes of this series. Without their help I could have hardly accomplished the task.
St. Gallen, 2013
Fredmund Malik
Introduction
The Right Strategy for the
Great Transformation21
The Great Transformation21-as I have been referring to the transition from the Old to the New World-will be larger than any other social transformation we have seen so far, as it will span the entire globe.
The more intensely I studied the effective but also explosive power of the Great Transformation and the relevant strategic solutions, the tighter became the limits of language. Describing the complexity of globally interconnected systems and finding words for the simultaneousness of their change dynamics is just as difficult a task as putting a Beethoven symphony in words. Wherever I turn there is a lack of terms to describe the new, its many forms and dimensions, and above all the enormous speed of change as well as the unknowable that comes with it.
The usual superlatives-all the "super" and "mega" terms-, even if they were not as trite as they are, would never suffice to capture the scope of the Great Transformation. Apart from that, these terms originated in the Old World, so they can hardly convey any more than the Old World's limited power of imagination. Still, occasionally I have to use these terms for lack of better ones (at least to date).
If, for instance, the new methods introduced in this book enable even the most complex decisions to be taken and implemented 100 times faster, to increase team efficiency by more than 80 times, and to find solutions based on maximum consensus in just three days where even the smallest compromise was previously blocked by social gaps, and if this power of solution has led to success in hundreds of applications, without exception-what terms could be considered adequate for such achievements, when the aim is to describe the new dimensions of effectiveness but avoid both grandiloquence and advertising slang?
Historically, previous transformation of a similar kind-in particular in technology and science-have always spawned a new language because the new could not be put in old words. In the social and political sphere, however, new terms will often gain ground when the change itself progresses, or even later than that. For instance, people in the Renaissance age did not know they were experiencing the Renaissance-a term coined as late as in the 19th century. And it was more than 10 years after Columbus had landed in "India" (1492), in 1503, that someone else realized that a "mundus novus", something completely new, had been discovered-a fact that never occurred to the discoverer Columbus himself in his lifetime. Amerigo Vespucci had never set foot on the continent called "America"-which, however, was rightfully named after him, for he was the one who ultimately identified it.
The Revolution in the Great Transformation21
The Great Transformation from the Old to the New World will fundamentally-and almost completely-change what people do, why they do it and how they do it. It will also change who we are and what concept of the world we have.
It will revolutionize the way society and its organizations function. Functioning twice as well at half the money is just one of many challenges that most people consider impossible to solve-although its solution is already being practiced.
In just a few years' time it will be with incomprehension and pity that we think back of the sluggish political decision-making processes we have today, of coalitions getting in their own way, of corporate management bodies paralyzing themselves, of slowly moldering change processes, of lethargy and resignation in so many organizations, of monstrous mega conferences that had no impact, and of the cluelessness of global organizations.
With the challenges we are currently facing and which seem to have appeared out of the blue-such as the complete turnaround in energy policy, the rotten financial system, the global debt mountain, and the increasing decay of the social fabric-the limitations of our present problem-solving approaches have become more obvious than ever.
The leaders of these organizations will be pitied and admired at the same time for having given their best and having tried to do their duties even under such inhumane conditions-although their efforts have increasingly failed, as even the most outstanding driver cannot win a race if he is given an outdated car.
Innovative, Intelligent and Right Solutions
At the same time, people will wonder why the new solutions were not made available to those leaders much earlier, in particular as they had long been published by us and applied successfully in hundreds of cases. Anyone who knows these solutions will immediately see how they offer new ways to end crises, and even to use these crises to make inroads into the New World.
For me, the ethical mission resulting from all that is to ensure with all my might that the necessary information about these new, global, society-saving solutions will be spread.
The funds to be freed up by the new solutions-and which are presently and pointlessly tied up in old structures and processes-will be used to create the innovations of the New World, instead of continuing to finance outdated approaches from the previous century.
For instance, one key task will be to establish the new type of high-performance educational institution-preferably outside the current educational system, as this will be the fastest way-and teach the new generation right from the outset of their student careers the leadership skills that, had they been in place, would have had the potential to prevent the current calamity. They include wholistic and networked thinking, familiarity with systemics as the science of entities, practical application of cybernetics as the science of functioning, and the ability to leverage bionics by using evolution's best solutions to innovate societal organizations.
This would strengthen our social solution intelligence by several orders of magnitude, because all of the above can be accomplished in less than half the time and in one integrated and in itself fully compatible study course.
The present book-just like the other volumes of the series Management: Mastering Complexity-presents the knowledge and approaches required to prevent the immiment social disaster and bring about new prosperity as well as a well-functioning social order well beyond the current political categories of left-wing and right-wing.
Strategy: Navigating Effectively Through the Complexity of the Great Transformation21
In the six parts of this book, we will first look at the dynamics of the Great Transformation21, its inherent risks of crisis and its opportunities, as well as the labor pains of the New World.
After that, we will deal with the astonishingly effective cybernetic systems for strategic navigation, the strategy maps required, and the empirical quantification of existing and new businesses from where the new territory of innovation will be explored.
Finally, I will show the invariant patterns in the tidal currents of great transformations, as well as the resulting economic dynamics and the strategies to deal with them.
In the last part of the book I will describe the most revolutionary tools for social change known to date: the social methodology of Syntegration, which enables us to master ground-breaking strategic change with great precision and "at the speed of light," compared to conventional approaches, The Syntegration technology helps to manage the growth and size of companies with ease and even turn them into strengths, specifically in cases where conventional approaches have proven to be futile and to paralyze rather than strengthen organizational performance.
The almost magic efficacy of these methods is based on cybernetic communication processes which, to an extent previously unimaginable, enhance collective intelligence and generate social energies. The simultaneous use of innovative system design tools creates highly effective intelligence and power centers for successfully mastering the challenges of even hypercomplex systems as well as their control and regulation. "Mega Change of Mega Systems at Mega Speed" will then turn out to be more than just a pretentious advertising slogan, instead denominating a program to open a bright future in a New World.
The topic threaded throughout the entire book series is how to master the Great Transformation21 and its unprecedented complexity. In the following graph, this complexity is depicted by means of the double S-Curve, indicating the substitution of something new for something old. The Old World is replaced by a New World.
This replacement generates the revolutionary socio-political and economic distortions and crises we are faced with today. They represent the labor pains of a New World.
This third volume of the series Management: Mastering Complexity, I describe how the right strategy contributes to the development of an effective solution.
Preface
Strategic Solutions for REvolutions
This book describes my strategic solutions for the REvolutions of the New World, which-although already under way-have yet to be recognized for what they are. That is why most of the measures taken so far are ineffective, with some even having a destructive impact on society.
What I call the New World will be the result of one of the largest global transformations of business and society that has ever taken place. I call it 'The Great Transformation21'.
The New Challenges
This transformation involves the danger of a social meltdown. At the same time, it also offers a chance for a new economic miracle to bring about a better and more humane social order where organizations function reliably.
What particular course this development will take depends, among other things, on the solutions, methods and tools that leadership elites worldwide can resort to in facing these challenges. It depends on which of the solutions at hand they can identify as genuine solutions, and which they ultimately opt for. One thing is certain: conventional means will not suffice to master the complexity of this transformation, as they have caused much of the current global crisis.
A strong driving force arises from the strategic solutions themselves that I am presenting here. They contribute their share so the upcoming revolutions will happen quickly, while-contrary to previous revolutions-manifesting itself as an innovative breakthrough rather than a violent upheaval.
They liberate us from both, long outdated forms of management and organization and the grotesque limitations of todays's social and political problem-solving processes.
Since 2011 my 'Manifesto for Corporate REvolution' has been laid down in my book Corporate Policy and Governance, the second volume in my series Management: Mastering Complexity. Many of the developments outlined there-and even before-have meanwhile materialized, first and foremost the beginning collapse of the financial system. Further profound changes, such as in technology and the sciences as well as in people's social value structures-in particular those of the younger generation-, in their perspective on and perception of the world, have progressed to a point where they cannot be stopped anymore, so they should be accelerated instead and directed along more constructive paths wherever possible.
So, what most people believed impossible at the time of the above publications became a reality just a few years later. In 2008 I wrote that knowledge would outrank money and information would outrank power. The ongoing self-destruction of the financial system proves my first point; the ever-increasing global impact of the social media proves the second. Ruling and leading will never be the same again.
The financial crisis itself, however, will not be a central topic in this book. I have published everything that needed to be said in this respect in the course of the past 15 years; now I let the facts speak for themselves. The scenarios I have presented-some of them as early as in the 1990s-have come true. The basic pattern of this development is 'deflationary depression', accompanied by social impoverishment and revolution-that is, unless economists and politicians do a radical rethink and change their course of action. That is why this book is dominated not so much by analyses as it is by solutions and the tools required for implementation.
The Right Knowledge
The knowledge society in the stricter sense is another topic I will not elaborate on here. I have addressed it in my book Corporate Policy.
Rather, what I make available here is the strategic knowledge that enables top managers in all kinds of organizations to tackle the challenges of the Great Transformation21 reliably, quickly, and effectively. The means to do that are my Management Systems® and the navigation, information, and control systems they include, as well as my strategy concepts and about a dozen new and greatly improved methods and tools.
Many of the pioneers among the top managers applying my management systems are left speechless by the power and speed at which problems are solved and more and more often resolved. Particularly effective are the high-performance processes of the social technology of Syntegration which helps master even huge and highly complex challenges better than ever before.
Just like in earlier phases of epoch-making transformation, almost everything is going to change fundamentally and radically. But while past revolutions were driven by machines, the imminent revolution will be driven by a new functioning of societal organizations, of their management at all levels, of their strategies and methods-including the levers of cybernetic self-organization and self-control.
My cordial thanks go to Mag. Tamara Bechter and Dr.?Sonja Böni for their enormously professional support with the new edition of what are so far three volumes of this series. Without their help I could have hardly accomplished the task.
St. Gallen, 2013
Fredmund Malik
Introduction
The Right Strategy for the Great Transformation21
The Great Transformation21-as I have been referring to the transition from the Old to the New World-will be larger than any other social transformation we have seen so far, as it will span the entire globe.
The more intensely I studied the effective but also explosive power of the Great Transformation and the relevant strategic solutions, the tighter became the limits of language. Describing the complexity of globally interconnected systems and finding words for the simultaneousness of their change dynamics is just as difficult a task as putting a Beethoven symphony in words. Wherever I turn there is a lack of terms to describe the new, its many forms and dimensions, and above all the enormous speed of change as well as the unknowable that comes with it.
The usual superlatives-all the 'super' and 'mega' terms-, even if they were not as trite as they are, would never suffice to capture the scope of the Great Transformation. Apart from that, these terms originated in the Old World, so they can hardly convey any more than the Old World's limited power of imagination. Still, occasionally I have to use these terms for lack of better ones (at least to date).
If, for instance, the new methods introduced in this book enable even the most complex decisions to be taken and implemented 100 times faster, to increase team efficiency by more than 80 times, and to find solutions based on maximum consensus in just three days where even the smallest compromise was previously blocked by social gaps, and if this power of solution has led to success in hundreds of applications, without exception-what terms could be considered adequate for such achievements, when the aim is to describe the new dimensions of effectiveness but avoid both grandiloquence and advertising slang?
Historically, previous transformation of a similar kind-in particular in technology and science-have always spawned a new language because the new could not be put in old words. In the social and political sphere, however, new terms will often gain ground when the change itself progresses, or even later than that. For instance, people in the Renaissance age did not know they were experiencing the Renaissance-a term coined as late as in the 19th century. And it was more than 10 years after Columbus had landed in 'India' (1492), in 1503, that someone else realized that a 'mundus novus', something completely new, had been discovered-a fact that never occurred to the discoverer Columbus himself in his lifetime. Amerigo Vespucci had never set foot on the continent called 'America'-which, however, was rightfully named after him, for he was the one who ultimately identified it.
The Revolution in the Great Transformation21
The Great Transformation from the Old to the New World will fundamentally-and almost completely-change what people do, why they do it and how they do it. It will also change who we are and what concept of the world we have.
It will revolutionize the way society and its organizations function. Functioning twice as well at half the money is just one of many challenges that most people consider impossible to solve-although its solution is already being practiced.
In just a few years' time it will be with incomprehension and pity that we think back of the sluggish political decision-making processes we have today, of coalitions getting in their own way, of corporate management bodies paralyzing themselves, of slowly moldering change processes, of lethargy and resignation in so many organizations, of monstrous mega conferences that had no impact, and of the cluelessness of global organizations.
With the challenges we are currently facing and which seem to have appeared out of the blue-such as the complete turnaround in energy policy, the rotten financial system, the global debt mountain, and the increasing decay of the social fabric-the limitations of our present problem-solving approaches have become more obvious than ever.
The leaders of these organizations will be pitied and admired at the same time for having given their best and having tried to do their duties even under such inhumane conditions-although their efforts have increasingly failed, as even the most outstanding driver cannot win a race if he is given an outdated car.
Innovative, Intelligent and Right Solutions
At the same time, people will wonder why the new solutions were not made available to those leaders much earlier, in particular as they had long been published by us and applied successfully in hundreds of cases. Anyone who knows these solutions will immediately see how they offer new ways to end crises, and even to use these crises to make inroads into the New World.
For me, the ethical mission resulting from all that is to ensure with all my might that the necessary information about these new, global, society-saving solutions will be spread.
The funds to be freed up by the new solutions-and which are presently and pointlessly tied up in old structures and processes-will be used to create the innovations of the New World, instead of continuing to finance outdated approaches from the previous century.
For instance, one key task will be to establish the new type of high-performance educational institution-preferably outside the current educational system, as this will be the fastest way-and teach the new generation right from the outset of their student careers the leadership skills that, had they been in place, would have had the potential to prevent the current calamity. They include wholistic and networked thinking, familiarity with systemics as the science of entities, practical application of cybernetics as the science of functioning, and the ability to leverage bionics by using evolution's best solutions to innovate societal organizations.
This would strengthen our social solution intelligence by several orders of magnitude, because all of the above can be accomplished in less than half the time and in one integrated and in itself fully compatible study course.
The present book-just like the other volumes of the series Management: Mastering Complexity-presents the knowledge and approaches required to prevent the immiment social disaster and bring about new prosperity as well as a well-functioning social order well beyond the current political categories of left-wing and right-wing.
Strategy: Navigating Effectively Through the Complexity of the Great Transformation21
In the six parts of this book, we will first look at the dynamics of the Great Transformation21, its inherent risks of crisis and its opportunities, as well as the labor pains of the New World.
After that, we will deal with the astonishingly effective cybernetic systems for strategic navigation, the strategy maps required, and the empirical quantification of existing and new businesses from where the new territory of innovation will be explored.
Finally, I will show the invariant patterns in the tidal currents of great transformations, as well as the resulting economic dynamics and the strategies to deal with them.
In the last part of the book I will describe the most revolutionary tools for social change known to date: the social methodology of Syntegration, which enables us to master ground-breaking strategic change with great precision and 'at the speed of light,' compared to conventional approaches, The Syntegration technology helps to manage the growth and size of companies with ease and even turn them into strengths, specifically in cases where conventional approaches have proven to be futile and to paralyze rather than strengthen organizational performance.
The almost magic efficacy of these methods is based on cybernetic communication processes which, to an extent previously unimaginable, enhance collective intelligence and generate social energies. The simultaneous use of innovative system design tools creates highly effective intelligence and power centers for successfully mastering the challenges of even hypercomplex systems as well as their control and regulation. 'Mega Change of Mega Systems at Mega Speed' will then turn out to be more than just a pretentious advertising slogan, instead denominating a program to open a bright future in a New World.
The topic threaded throughout the entire book series is how to master the Great Transformation21 and its unprecedented complexity. In the following graph, this complexity is depicted by means of the double S-Curve, indicating the substitution of something new for something old. The Old World is replaced by a New World.
This replacement generates the revolutionary socio-political and economic distortions and crises we are faced with today. They represent the labor pains of a New World.
This third volume of the series Management: Mastering Complexity, I describe how the right strategy contributes to the development of an effective solution.
